Vendor wants to see Loan offer

Just a question, we put in an offer on a house we like on Friday and it was accepted. The Estate agent told us that along with the €5k deposit he wants a copy of our loan offer, is this the norm?. It's a 2nd hand property in Bray, which is actually vacant as the current owners already have moved on and want a quick sale, proposed closing date of 27th Oct and we are thrilled as it's sooner the better for us.
Our mortgage is all done, we were buying a property in Rathnew and pulled out as we took off the rose tinted glasses and realised it was too risky a buy looking at the market at the moment, esp the price it was. Husband was having negative equity nightmares so we've sat on the fence for a while and pounced on a nice house where we want it at a great price.
The reason I am asking this is that the loan offer I have from the other house is for alot more than we are paying for this and I don't want them to see that amount. Our lender is in the process of changing the house and PP details and seding out valuer.
What do you guys think if them asking us for it though?

Re: Vendor wants to see Loan offer??

I suppose they may have a bridging offer and need to make sure you have the cash to close and are not messing them about. We were not asked to show it and to be honest i think they are a bit cheeky asking for it. Whats to stop them upping the price if you are asking for say a precentage of the full price from the mortgage lender? They could say "we can stretch this lad out for another 5k" and well you have shown all your cards.

Re: Vendor wants to see Loan offer??

They may have been messed around in the past so are looking for copy offer as a comfort factor. As you are waiting on the valuation you can't show this yet but you can tell them you have been previously approved for a similar sum.

Sarah

www.rea.ie

Re: Vendor wants to see Loan offer??

nelly said:

to be honest i think they are a bit cheeky asking for it.

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I am reading this differently... they simply want to make sure the OP is a genuine buyer and as they want a quick sell, they are right ensuring the OP has everything in place for buying...(i.e. mortgage pre-approved/approved)
I would not think the idea is to determine by how much they can up the price.

Re: Vendor wants to see Loan offer??

merely making the point that it is possible that this is one reason for asking. If the market is cooling in this area the auctioneer might use this tack. Alls I'm saying is its possible.

Re: Vendor wants to see Loan offer??

They may accept confirmation from your solicitor that he/she has witnessed your loan approval for the amount stipulated, thus avoiding the need to disclose any amounts for which you have approval above this stipualted figure. I would be as wary as Nelly on this - you never know.

Re: Vendor wants to see Loan offer??

Thanks guys. I still have a copy of the loan offer for the house we were purchasing but there is a considerable difference in figures, that is the big worry we both have as we really love this house but we won't be messed around coz they think we have the money, when in fact we are far from loaded. Young family and all that.
I was just going to say to the estate agent, look we have loan approval but the best thing to do is to wait until IIB's valuer comes out and once this is done we will have the full loan offer on the table with new details and I will get my solicitor to fax that over. Would that be okay??.
The house has been on the market for a good while, like alot of houses at the moment and it's lovely and we negotiated on it and we are happy!!!.

Re: Vendor wants to see Loan offer??

You can't show them yet as you haven't been approved on this house. It's as Sarah W says, you have to wait until the valuer has been out. It's probably just a case of them being messed around before. If the house is empty and they want a quick sale, they need to reassure themselves that your serious.

We need a house!, if we are out by Oct 27th we save a months rent!. Our new loan offer will be a quick turnaround anyway,just a change of figures and property details really. It was built in 2001 so not problems there.

Do you think that you can go from 'sale agreed' to closing by October 27?

This is nigh on impossible I would have thought, regardless of the intentions of both parties to the sale. Banks, solicitors, insurers etc. will all need to be ultra efficient-not likely in my recent experience. For instance, the mortgage department of my bank takes around 4-5 days to actually open their mail and update their systems.

In general, you would be talking 6 weeks minimum from sale agreed to closing..

Vendor is the one who said Oct 27th not me....told my solicitor on Friday and she didn't say anything about it. I know it won't close that fast but at least I know I am not dealing with slow people and will be in my house in a normal timeframe.
I've already been onto our lender anyway and they are onto it. I know how slow a valuer can take aswell, it can be a week before you get a call from him/her to say they are on the way out to the property.

If the vendor is showing signs of desperation then.....hammer them !. Revise your offer down then show them your loan offer. The fact that its more than you need is irrelevent. Remember, when the shoe was on the other foot, EA's and Vendors thought nothing of coming back to Buyers who agreed to pay the asking price and then telling them they'll have to up the ante. Tell them were heading into a falling market. Skin them I say.

If you are organised it is possible to close within 4 weeks. We had our deeds ready, management company stuff sorted, everything paid up to date in anticipation so everything was sorted within about 24 days.

I know this is highly unusual but just saying it is possible. We were selling without an estate agent so were dealing with the purchasers directly which may have helped.

while that is not very nice i have to say that my initial reaction is that this is a nasty pushy auctioneer in motion and being on the receiving end of one not long ago - who managed to push my hand (sense bought is better than sence taught) all i say is do not be pressured by your vendor or their auctioneer. it is something you need to get right for you, not rushed for their sake - keep this in mind.

CCOVICH said:

Do you think that you can go from 'sale agreed' to closing by October 27?

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I would say it is do-able, still 4 weeks to go, context is favorable as FTBs & empty house.
We closed in 5 weeks, and house was not empty...

Mag2006 said:

Just a question, we put in an offer on a house we like on Friday and it was accepted. The Estate agent told us that along with the €5k deposit he wants a copy of our loan offer, is this the norm?.

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Isn't this a little odd? I had thought (could be wrong) that you can't get a loan offer on a particular house until the valuation had been completed. And you're hardly going to get a valuation done, until you've gone Sale Agreed on the property. Surely any auctioneer would know this.

As for the October 27th deadline, it's certainly possible (but tight) but the onus would be on the vendors' solicitor to get the contracts to you in time.

It might well be that they've been messed around by purchasers before, and are getting edgy about the market. So you can show them the old loan offer if you like, but make it clear that if there's any messing around with the agreed price, you'll withdraw the offer entirely.

It is possible, but there are too many variables to say for sure.

Estate agent is very pushy, the guy in question has a reputation for it actually and our offer was accepted within 20 mins of putting it in and then he rang me back saying the vendor has a "few stipulations" i.e asking to see loan offer. My husband is thinking of bringing what we have over to him but tippex out/cover over the orignal amount etc. Is that a waste of time on our part?.
I was thinking of lowering the offer but thing is, unknown to them, we really are desperate to buy a house and have waited too long for it all to work out for us. We did sit out for a bit when we noticed prices going down and taking longer to sell. We took advantage of this in our offer.

Witchfinder said:

Isn't this a little odd? I had thought (could be wrong) that you can't get a loan offer on a particular house until the valuation had been completed. And you're hardly going to get a valuation done, until you've gone Sale Agreed on the property. Surely any auctioneer would know this.

As for the October 27th deadline, it's certainly possible (but tight) but the onus would be on the vendors' solicitor to get the contracts to you in time.

It might well be that they've been messed around by purchasers before, and are getting edgy about the market. So you can show them the old loan offer if you like, but make it clear that if there's any messing around with the agreed price, you'll withdraw the offer entirely.

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He knows we had a house sale agreed already with valuation done and loan offer out on that house which we pulled out of. The original loan offer is dated back in July though. I would personally rather wait for the new loan offer and everything done right. I don't see why the panic and I do feel that the vendors just want to make sure they are definatly going to get a SOLD sign.